3M an Innovative Organisation

Main factors that make 3M an innovative organisation The 3M story is a story of innovation that transformed failure into success. It also is a story of well-motivated individuals who knew how to create original ideas and make them commercial products customers need.Advertising We will write a custom case study sample on 3M: an Innovative Organisation specifically for you for only $16.05 $11/page Learn More Innovation is the life-blood of 3M. The people behind the organisation are innovative from the very start. They were five businessmen who didn’t recognise the meaning of failure. From the start, they knew they had to apply innovations because as they decided to dig deeper into the realm of business, they had to encounter difficulties. They didn’t find the right ore mine for their product; instead they found something else. The founders were looking for a mineral deposit so that they could process it and make it their primary product. But the mineral ore proved to be zero, or perhaps a sham, a wrong information that the original founders may have gotten into. They could have surrendered, put their cards on the table or inform the shareholders and the other stakeholders that to continue would mean more losses for the company. So, it was better that they pack up early, go their own separate ways, start anew and spend or divide what was left of their money. But they did not surrender. They did not translate failure into despair; instead they looked for other ways to find new product or new business for their struggling new company. Failure motivated the young founders of 3M to be creative and innovative, slowly allowing the small organisation to move, to survive for years until it grew into a global organisation, becoming a hundred-year-old company now experienced in the art of business. The company now manufactures products like sandpaper, fibre optic cables, commercial and industrial products, health care products, an d has focused on customer needs. With creative ideas and new technological inventions from a pool of creative people, the company now owns hundred of patents and intellectual property rights. Among these patents are the Scotch-Briteâ„ ¢ and Post-it ®, as well as other brands and logos attributed to the company. (3M company information: history 2012) 3M allows employees to have occasional interaction with people of different cultures. Challenges and difficulties come along with the opportunity. These difficulties range from adjustment to and learning with the new culture which is far distinct from the native culture. Performance is affected when employees fail to adjust with the new culture. Trainings and seminars (on-the-job trainings) are compulsory preparations. This includes cross-cultural training and knowing the unexpected. Discuss another innovative application or product of a different organisation and state why this product is successful An example of a product that is considered innovative and successful is the hybrid car Prius invented by Toyota. It is actually an electric car which runs on gasoline and electricity.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More As we know Toyota has introduced the concept of kaizen and kanban. These are Japanese terms introduced in Japanese management. Kaizen means improvement that is continuous and gradually introduced. Kanban refers to the process in production where some steps are changed or modified to provide more innovations in production and to avoid unnecessary functions. (Lynch 2008, p. 773) Toyota used these methods in the manufacture of the hybrid car Prius. Toyota has manufactured millions of cars but the production of Prius consolidated all expert ways of car production and Toyota’s pool of engineers and technicians. The making of Prius enabled the Toyota management team to introduce tradition al and innovative technique never before introduced in car production. But it tarnished a little of Toyota’s image as a hybrid manufacturer because of some defects in the brake pedals which forced the company to withdraw millions of cars worldwide. But Toyota maintains that they had tested Prius many times and introduced quality management before it was made commercially viable to the public. Prius is the first hybrid project that really caught the eyes of the world, and when Toyota said that it is the car of the 21st century, management was sure they were telling the truth. (Ichijo Kohlbacher 2008, p. 174) Prius as the car of the future started from a mere idea and innovation of other Toyota cars to a contribution of inputs and expert knowledge from the organization’s database and expertise of Toyota engineers. How it failed is not a question here, but how it succeeded at first is what is significant. Prius was a promise fulfilled by Toyota to help reduce materials d etrimental to the environment and to see to it that manufacturing plants are environmentally friendly. Toyota’s decision to push through with the Prius project was motivated by their desire to help in minimizing global warming, thus the need for low-emission vehicles. It gave Toyota an opportunity to break old technical systems with revolutionary, environmentally friendly technologies. It had long worked to reduce emissions in internal combustion engines. Toyota has been into the program of Zero Emission Vehicle, and one of Prius’s features is its being fuel efficient. (Dyer Nobeoka 2000, p. 345) Prius engineering program is done almost entirely in-house, but it is a radical innovation. It was then mass produced – the first hybrid car to be mass-produced. Before the complaints and problems surfaced, Prius proved the practicality of hybrid cars. Toyota’s Electronic Vehicle Development Department started the systematic study of the hybrid system, combining an engine and a motor.Advertising We will write a custom case study sample on 3M: an Innovative Organisation specifically for you for only $16.05 $11/page Learn More This technique of imbedding knowledge in a product yielded economic returns and internal knowledge for the company technicians and engineers, while only utilizing external knowledge later. Toyota did not anticipate that a problem as simple as the brake pedals would tarnish its reputation. There is the presence of the success curse in a company that has enjoyed continued successes right from the start. The importance of the commercialisation process for innovative organisations like 3M The company encourages continuous flow of ideas. People at 3M don’t hold their ideas to their own but instead allow the company to take hold of their ideas, put these ideas to work, make them concrete and real turning them into products. The next step is to allow a brief trial-and-error and test if a p rototype is possible. Prototyping is one of the initial steps into commercializing one’s idea. One can imagine that a prototype at last is proof that an idea can be turned into a product. So, before while imagination and creativity were the only ones involved now success in turning that idea into a commercialized product is nearing its fruition. Before manufacturing that product, all possible scenarios, advantages and disadvantages, and unseen loopholes should be taken into consideration so that making the product a success will finally become a reality. Then, by all means manufacture that product, the fruit of the team’s efforts, of brainstorming and discussion, of countless sleepless nights, and so forth. At 3M, a product is always the result of quality innovations. This product is applied with total quality management, continuous innovation and best practice. Sophisticated tools and technology are used along the arduous task of making the product meet customers†™ requirements. Marketing the product is another thing but it is one of those challenges 3M people are adept and do not take for granted. The product is applied with the necessary marketing mix such as product, price, place, and promotion. Creative employees have added the fifth P which is people. These are applied and executed at 3M, but 3M people have not forgotten the traditional parts of the marketing mix which are advertising, personal selling, public relations and sales promotion. These are marketing activities that have to be executed by the marketer and his/her team in order to introduce the new product.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Marketing research on experience focuses on what the customer wants. Benefits are in the form of satisfaction and customer experience of the product. Consumer behaviour for example has three aspects which are: creation of information, behavioural concept theory, and consumer attitude theory. These concepts provide consumer insight on consumer experience. (Schmitt 2010, p. 55) Supply chain goes with the demand chain in order to see to it that complexities in the market are properly addressed. Demand chain points to a network of trading partners which include manufacturers and end users. It is also linked to the customers who have to be consulted on the product quality. It starts with the manufacturer, goes to the customer or end user but has to link back to the manufacturer because the customers’ ideas and opinion regarding the product are significant. In a research conducted by Edward Morash and Daniel Lynch (cited in Jobber and Lancaster, 2003, p. 15), in which they involved surveys on global capabilities and performance measurement practices, they found that customer closeness is important in the new global setting. The research found that some supply chains are also experimenting with mass customization, which is a strategy that combines operational excellence with customer closeness. A key performance indicator (KPI) is often used to measure the success of a certain activity in an organization. Write an essay to discuss the importance of KPI to organizations. Support your answers with examples of real organizations and from various business functions. A key performance indicator is a measure indicating how an organisation scored on a particular part of its performance. A KPI represents an organisation’s success on a specific objective. In other words, when an organisation measures its overall performance, it identifies several success factors that comprise organisational objectives. A KPI is usually expressed in numbers or percentages. (Burby Atchison 2007, p. 75) A KPI can be defined in many ways in accordance with the organisation’s type of business, or activities and products. For instance, an organisation which is non-profit and whose objective is to provide aid to poor individuals and communities, its KPI is measured on the amount of aid, financial or in kind, to individuals and entities. A KPI is a basis for an organisation’s future goals and projects. If an organisation does not have a measured KPI, it cannot tell how it has attained its goals. There are organisations that used many KPIs in their various businesses, products, or activities. A KPI is very important because it indicates how successful an organisation’s business is and how it scores in the different organisational activities. A KPI is a measurement of what has been done in business or organisation. KPIs tell about the organisation’s goals and objectives. They are measured on a regular basis and not just once. Members of the organisation contribute to the creation of KPIs and agree on their significance. An aspiring entrepreneur who sells appliances measures his KPI by the number of appliances sold for a month. He can accompany this with a short survey asking customer opinion why they preferred the particular appliances. The KPI survey will determine the entrepreneur’s decision in his next requisition from the appliance supplier. Another important thing is that a KPI must be timely so that employees and decision makers know what to do. If it is a late KPI, it is useless. For instance, a KPI is needed on how a product will be introduced to a certain market segment. If the results are not immediately known, competitors will enter the scene and beat the organisation on this aspect of business. (Parmenter 2007, p. 151) An organisation conducts KPI to determine the financial viability of a certain project, whether the operation has increased the revenue, or whether it has higher profit. Internal a ctivities in an organisation also need KPIs or performance measurement to determine the effectiveness of some functions, like knowledge sharing. Knowledge sharing as best practice cannot be easily attained. There are barriers to this kind of HRM exercise. Szulanski (1996) termed it the internal stickiness within the firm. Organisations apply and transfer best practice among themselves, or within the firm, but barriers impede the transfer of knowledge from people to people, from department to department, or from branch to branch. Experiences of some organisations like General Motors, IBM, and others, proved that it is not easy to transfer knowledge as best practice. Internal stickiness has been seen as an important topic of study. A KPI is needed and applied to determine how effective is best practice introduced within the firm. (Groysberg, Nanda, Nohria 2005, p. 5) Technology giants conduct periodic KPIs to their volume of sales to determine whether profit increased for the period or whether their products satisfy customers. If sales have increased for the period, it means their product meet customer demands. For example, Nokia reported a decline of 7% in mobile phone sales in 2009. Apple’s iPhone and Research in Motion’s BlackBerry were leading in the competition, a major threat to Nokia. Google’s Android, the mobile operating system, also became a threat as it was gaining advantage in the market. Nokia’s profit on handsets fell by 18.6% during the second quarter of 2009, quite a big margin. But it remained to be seen because Nokia led in the high-volume of sale of cheap handsets and devices in the developing countries. (Reardon 2009, p. 1) Nokia had net sales of â‚ ¬40,984 million in 2009 compared to â‚ ¬50,710 million in 2008. It was also higher in 2007. The KPI data tell us that there has been a continuous shift in the volume of sales for Nokia. In 2010, with the appointment of Mr. Elop as the new CEO, Nokia began to make some improvement but not much. But it showed that the KPI for this period of transition enabled the company to make a decision and that is to appoint a new CEO. (Reardon 2009, p. 1) Nokia made a decision to introduce a new product series, the N-97 which is said to be a success although it could not really compete with the already popular Apple and RIM devices which are said to be growing favourites of the young demographic. (Reardon 2009, p. 2) Nokia hired Strategy Analytics to conduct KPI. According to the study, Nokia’s share in the global mobile phones sales had been maintained, or there was a wide control of 40.3 percent, a little down than the year 2008 which was 40.7 percent. In the United States, it lost its grip of the market – a big fall from 35 percent to 8.1 percent in April 2002. Apple, Samsung, and Research in Motion had the advantage. Their devices were more advanced than Nokia’s. (Reardon 2009, p. 3) The next year, Nokia had a rebound of 70 milli on Smartphones sold globally while Apple only had 33 million iPhones sold. The new CEO promised a new rise for Nokia from its slumber. Report for 2010 registered positive with sales in the fourth quarter reaching â‚ ¬12.7 billion. (Reardon 2009, p. 3) There are advantages brought about by the KPI results. This resulted in the selection of Mr. Elop as the new CEO. But Nokia’s experience in the Smartphone market was enhanced by the innovations its engineers introduced. Their biggest asset is Microsoft. Nokia and Microsoft naturally emerge as a formidable force in the mobile software. Google and Apple are major competitors. It was only in the United States market that Nokia lost by ten percent. But in the overall leadership of handsets, it had a 38 percent share of the market. Nokia failed to gain the support of four big U.S. phone manufacturers which account for the big bulk of phone sales in the country. Nokia is still the leader in the sale of low-cost cell phones worldwid e. Nokia has introduced innovative products and many of these are still with the company. With the new leadership of Mr. Elop, observers and analysts have commented that the products will surely come to life again. One of the products is the touch-screen handset which can be connected to the internet. (O’Brien 2010) Big and small organisations conduct periodic KPIs to determine market sentiments and market needs. As mentioned, there are many uses and advantages. Decision making is triggered by KPI results. Nokia needed a periodic KPI for its series of mobile products. Like the other competitors, it has a lot to catch up. And all these organisations need KPIs that can provide a brief and accurate background of the market. It can provide them a chart for important decision making. The Smartphone market is threatened by competing giants. The annual sales for this market are estimated at 400 million devices. Nokia has been telling the public that they are catching up with new pro ducts to beat Apple and Microsoft. Nokia has struggled in the Smartphone market and in the mobile software sales. Its profits had been reduced with the entry of the Android operating system, along with Apple and BlackBerry. Nokia needs a strong asset to make its hold in the Smartphone market and retain its lead once again. (Reardon 2009, p. 3) Nokia has produced the Ovi platform which is a service business and a new product, the Nokia Netbook. This kind of product needs regular KPI data, not just periodic, because it tells how the product has performed in the market and how the designated demographic has responded to the product. References Burby, J Atchison, S 2007, Actionable web analytics: using data to make smart business decisions, Wiley Publishing Inc., Indiana. Dyer, J Nobeoka, K 2000, ‘Creating and managing a high-performance knowledge-sharing network: the Toyota case’, Strategic Management Journal, Strat. Mgmt. J., 21: pp. 345-367, via City University London database. Groysberg, B, Nanda, A, Nohria, N 2005, ‘The risky business of hiring stars’, Harvard Business Review, July-August 2005, via City University London database. Ichijo, K Kohlbacher, F 2008, ‘Tapping tacit local knowledge in emerging markets – the Toyota way, Knowledge Management Research Practice (2008) 6, pp. 173-186, via https://www.palgrave.com/gp/journals Jobber, D Lancaster, G 2003, Selling and sales management (sixth edition), Pearson Education Limited, England. Lynch, R 2008, Strategic management, 5th edition, Financial Times/ Prentice Hall, USA. O’Brien, K 2010, Nokia’s new chief faces culture of complacency, https://www.nytimes.com/2010/09/27/technology/27nokia.html?_r=1pagewanted=all Parmenter, D 2007, Key performance indicators: developing, implementing, and using winning KPIs, John Wiley Sons, Inc., New Jersey. Reardon, M 2009, ‘Nokia’s Smarphone problem’, Signal Strength – CNET News, 2009, v ia City University London database. Schmitt, B. 2010, ‘Experience marketing: concepts, frameworks and consumer insights’, Foundations and Trends ® in Marketing, vol. 5, no 2, pp 55-112, via City Universdity London database. Szulanski, G 1996, ‘Exploring internal stickiness: impediments to the transfer of best practice within the firm’, Strategic Management Journal, Vol. 17 (Winter Special Issue), 27-43, via City University London database. 3M company information: history 2012, https://www.3m.com/3M/en_US/company-us/about-3m/history/ This case study on 3M: an Innovative Organisation was written and submitted by user Mikayla Cline to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Colonial Expansion of Western Civilization essays

Colonial Expansion of Western Civilization essays From the late nineteenth to the early twentieth century, Western nations including; Germany, Great Britian, France, and Italy, enrolled in a remarkably fierce period of imperial expansion. From the sixteenth to the eighteen centuries, there has been a on going fight for control over the new world. There are a several factors that contributed to the crave colonial expansion. One very imporant factor was the need to spread economic influence. Also, other countries believe that this was their nations last chance to gain any control and enlarge and of their empires. It was almost like a national competition among countries to see who could aquire the most territories because if they didnt then someone else would. Lastly, was the need to sway public opinion. Before the late eighteenth century, the opinion of the public was rarely considered, but when it came to colonial expansion, everyone is affected...positively or negatively. According to Friedrich Fabris Bedarf Deutschland der Kolonien in 1879, the German nation is more than capable of expanding its colonies and pave the way of a new course. He believes that Germany is financially and economically inclined, intensely appropriate for being a cultivated country, and could provide plentiful number of workers to do so. He feels it will be beneficial to the economic situation and to the entire national development for that matter. Fabri also states that Germany has such a political and historical power and he feels that new nations are made bitter amongst eachother and he appeals to the public by letting the German people think that by colonizing, this will bring the nations and the people together as one and this could create a liberating effect The letter form John G. Paton to James Service Urging British Possession of the New Hebrides in 1883, also states his opinion to why the British should expand to ...

Directive and indirective effects Essay Example | Topics and Well Written Essays - 2500 words

Directive and indirective effects - Essay Example At the same time, however, the EU's member governments have created and allocated increasing powers and discretion to a number of supranational organizations, including the executive Commission, the European Court of Justice (ECJ), and a European Parliament (EP), which now acts as a co-legislator with the Council in a growing number of areas. Although clearly the creation, or agents, of the member governments, these supranational organizations possess powers and preferences distinct from those of their member-state principals, and they have frequently been posited by both practitioners and academic observers as the embodiment of the project of European integration. The Commission of the European Union was established as one of the two executive institutions of the European Communities (EC). As opposed to the Council of the European Union, which represents the Member States, the Commission has been regarded as both the European, or supranational, and the administrative arm of the EC executive. The term refers to both the collectivity of the Commissioners (currently 20 in number) and the administrative apparatus that serves them. ... As to supervision, the Commission was given a general responsibility to ensure that other EC institutions and the Member States fulfilled those tasks and provisions assigned to them under the founding treaties. It had a duty to ensure that decisions taken by the Council were carried out, or adhered to, by the Member States, making it responsible for the implementation of EC legislation (for more detailed information see Elgstrm, 2005, p. 214). With the establishment of the EU, the European Commission continued to uphold the founding treaties and the acquis communautaire by monitoring other institutions and the Member States, although its exclusive right of initiative was compromised. In extreme circumstances, it can seek to enforce implementation by prosecuting an offending institution or Member State in the Court of Justice. The Commission is also required to advise on matters regarding the treaties, and even volunteers advice where it deems necessary. In order to fulfill this function, the Commission has had to develop a vast network of consultative and advisory bodies and contacts. It continues to take decisions in conjunction with the Council and the EP or, as with the CAP and competition policy, in its own right. The TEU gave it additional initiative authority in the areas of social policy and economic and monetary union (EMU). The Treaty further gave the Commission the right to be fully involved in the work of the tw o intergovernmental pillars that would stand alongside the EC: it can seek to initiate action within these pillars and even propose that some areas of responsibility should be transferred to the EC pillar (Sieberson, 2004, p. 993). The Commission must also carry out the duties and

Technology-Based Bank Frauds Assignment Example | Topics and Well Written Essays - 750 words

Technology-Based Bank Frauds - Assignment Example When a user enters their details on the website, the hackers are able to access sensitive information such as passwords, usernames and security codes that enable them to commit various crimes. Over time, there has been an increase in reported cases of financial theft. This can be attributed to the advancement in the level of computer software where individuals are able to create software that enables them to conduct various forms of cyber-crimes such as bank fraud Radha (2004). Phishing is mainly targeted at financial institutions, and there has been the increase in the number of reported theft cases. The keylogger software in the attempted bank theft in the London-based Japanese bank Sumitomo Mitsui is a type of spyware that has the ability to record the details used for logging in to a log file. The information is then sent to a specific third-party. Although initially designed for legitimate use such as enabling employers to monitor the employee's use of the work computers, the software has been largely used to commit financial fraud. Once the hackers gain access to passwords and other bank account details, they are able to transfer money from different bank accounts to other accounts, either locally or foreign Radha (2004). The keylogger used in the London case enabled the cybercriminals to keep track of the keystrokes used when the unsuspecting victims used the bank's client interface to access their bank accounts. There is a need to adopt strategies that protect one’s personal information so as to prevent the occurrence of cyber-crimes financial fraud and bank thefts Senator (1995). There exist various technologies that can be used to prevent both phishing and keyloggers. Keyloggers present a major challenge since their purpose is to get access to confidential information. However, one can employ several techniques so as to avoid the threat of keyloggers.  

The Parable of the Good Samaritan Essay Example | Topics and Well Written Essays - 1000 words

The Parable of the Good Samaritan - Essay Example The man of law asks for an interpretation of the law. What is said by Jesus is told in the form of a story, which is known as the Parable of the Good Samaritan. The parable is not an explicit answer, but is an answer that provides the story in such a manner as to provoke thought and further conversation. This story is an essential form of teaching where the teacher poses the situation and the student draws from it the lesson. The story that Jesus tells is that of a man who is robbed and those who see his plight and their reactions. The first is a priest who walks to the other side of the road in order to avoid him. The second is a Levite who also walked to the opposite side of the road to stay uninvolved. The third is a Samaritan who provides the man with help. The Samaritan goes beyond simple help, giving him a ride to a village and asking an innkeeper to look after the robbed man until he is in health. During the process of providing health, the Samaritan bandaged his wounds, used oil and wine on him to help heal him, and let him ride on his donkey. He offers to pay the innkeeper for his service and any extra service that the robbed man may need. The question that Jesus, as the Great Teacher, poses to those hearing him is â€Å"Which of these three do you think was a neighbor to the man who fell into the hands of the robbers?† (Luke:36). The lesson is taught through an example, but without providing the answer to those he is teaching. He expects that through His example, they will find the answer of their own accord. The location of the parable is identified by Hughes and Laney (2001) as the Jordan Valley which is a bit north of the Dead Sea. This route which runs through Wadi Qilt is filled with rocks and rugged terrain where robbers could ambush travelers. There is no specific time given for this story, and it is just as likely that it is a story of example rather than a related story from history. The location makes it likely that the three traveler s who passed by the robbed man might be there, but allows for the significance of the Samaritan to shine through. The location is significant as it is a man traveling from Jerusalem to Jericho, which indicates that he is traveling from morality into lands of less. Hultgren (2004) relates the belief of Augustine who suggested that this descent represented man’s descent from what was holy and immortal to that which was not and was decidedly mortal. The road is a literal descent as it starts at Jerusalem which is at 2700 feet above sea level but ends at Jericho which resides at 850 feet below sea level. Interpretation Chapter ten of Luke begins by describing a mission that is given to seventy-two of Jesus’ followers. He sends them out to gather more believers through their various acts in His name. He expects an exchange from those the followers encounter. If they are welcomed, then they give the gifts that He has given them the power to give, but if they are rejected the y are to make clear that they have rejected men of God who are on His mission. He says to them â€Å"Whoever listens to you listens to me; whoever rejects you rejects me; but whoever rejects me rejects him who sent me† (Luke 10:16). In this case, when he gets to relating the parable, it can be said that he is relating the robbed man to his followers and those who accept them as neighbors as they are then given remedies

The Transformational Leadership Style Business Essay

The Transformational Leadership Style Business Essay This assignment describes the development and transformation process of State Trading Organization Public limited (Here Onward STO). STO strived to provide to Maldivian market, products ranging from staples (like rice sugar and flour), medicine, quality merchandise, and improved construction material, oil and state-of-the-art consumer goods as well other general trading products. Due to newly established democracy and regulations, innovation imported by FDI and service level challenges STO to fundamentally rethink their business and reformulate their strategies. The nation was growing, and so were the nations demands. The organization is established in the year 1964. For four decades STO was known as the market leader. However, it lasted till the industry was opened for foreign and domestic competition in 2005 under economic and political reforms in 2001. Hence, STO foreseeing the competitive and political challenges, the organizing aimed a broader transformation towards becoming a market oriented company. This paper will cover mainly two sections. Firstly, the paper has studied the company background as the introduction of this assignment. Secondly, it has attempted to understand why change is important for organizations to adopt in todays business environment. Therefore, through highlighting on the external factors such as political, Economical, Social and Technological factors (PEST factors) that are as drivers of change, has been given importance as the literature of the subject. Consequently, the main part of the paper: finding the facts, assessing the findings, discussing and analyzing the situation which will help in understanding the strengths and weakness of the subject being studied in this assignment was thoroughly evaluated as the primary component of the paper. In addition, it has given insights into the importance of leadership in bringing changes effectively and explains the opposition and challenges faced by STO. Thus, causing STO to reconsider and reformulate in various business strategies like Leadership, people engagement and change management methods to become customer friendly and improve its image. This assignment will highlight various future challenges awaiting STO and recommendation for actions. INTRODUCTION Company Background The beginning of State Trading Organization Plc, (formerly known as (ATA) Athireege maafannu Trading Agency) is a registered organization. The roots of State Trading Organization PLC, dates back to à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦(website) 1964 when it was opened to finance the purchasing and importation of essential food items needed for the Maldivian community in bulk. Today STO has sustained this important responsibility to oversee the food security concerns of government and diversified into many other areas of importance such as energy needs of the country which has now become part and parcel of STOs mandate. Within the framework that includes these two areas, STO has diversified and is also competitively engaged in trading in other areas including Consumer Electronics, Home appliances, Medicals, Canned foods, Health foods and a range of other high quality products. This has been achieved by direct procurement and distribution as well as forming joint ventures to effectively trade in areas where STO might have been at disadvantage had STO not been able to do so, while still maintaining a strong hold with the Government as the primary trading partner of choice. State Trading Organization plc with its subsidiaries, a joint ventures and associates is a nationwide leader in the business sector. It has significant and focused interests in petroleum, construction materials, electronic items, cooking gas, cement, roofing sheets products, home appliances, super markets and insurance. The company is geographically diverse, with operations and developments in Maldives and Singapore. Diversification is the one of the most important strategies in STO. Therefore STO is entering different business sector like, Tourism, aviation, oil business, construction, agricultural produce and real estate business. METHOD OF INVESTIGATION Most of the information about the various strategies utilized by STO to face competitive challenges was acquired through numerous interviews with managers and employees of STO. Other pieces of information were also gathered through the companys website and local media. The websites and publications of the governments numerous ministries and departments are considered the main sources of information on topics related to the governments policies, regulations and laws. Information regarding trade regulations and policies are taken from the Ministry of Economic Developments annual reports, as well as from the statistical reports that they periodically publish online. In addition to these sources several pieces of information were also acquired through STOs annual report of 2011 and the Quarterly report of 2012 LITERATURE REVIEW The liberalization of Maldives economy and trade regulation has led to market widening , attraction of new foreign investments in well known companys and competition that has led to reduced prices, latest and innovative services, quality products and better customer care. As is suggested by Bortolotti, Bernanrdo, Juliet DSouza, Marcella Fantini, and DomenicoSiniscalco(2002 cited in SilivioContessi 2004 p.3)1the infrastructure investment fosters market interaction and competition through three channels direct market selection, restructuring and entry. As is the theme of this paper, how leadership and people engagement transformed and restructured STO to a market oriented firm to confront the competition from FDI. However, the liberalization was not fully effective due to the certain exclusivities provided to STO such as Government major share. Recent changes in political platform and FDI regulation STO need to be able to adapt different leadership style like, autocratic, democratic leadership Style and other shifting circumstances and cope with those changes (Moment, 2007)2.   Every organization needs leaders who can change as fast as market conditions do (Newcomb, 2005, p. 34)3.   Business needs can change rapidly and employees look to their leaders to guide them through change.   Uncertainty in leaders can lead to a lack of faith by employees. Good leadership is critical to a successful school. Success comes from aiming high with the clear vision, ethos and communication that good leadership brings. We will act to support high quality school leadership and inspired ambitious school communities. (Ambitious, Excellent Schools Our Agenda for Action, Scottish Executive, 2004, p5)4 Research into transformational leadership in organizations has found links to improved employee commitment (Barling,webberKelloway ,1996)5,heightened trust in leadership (Bass B.M.,1990),and stronger connection with the vision (Howell and Shamir,2005)5 and thus alignment of effort with the (change) goal (Shamir,House, Arthur,November 1993 ) cited in cited in Sherry Scully 2008)5. Based on the research results it could be concluded transformational leadership may be more appropriate for STO undergoing transformation where motivation of employees and commitment to change comes from their intrinsic motivation. Future leaders and employee engagement will need to be conversant in doing business internationally and conceiving strategies on a global basis. Globalization will intensify the requirement that senior leaders deal effectively with a complex set of constituencies external to the organization. (e.g., responsibility for managing the companys interface with trade, regulatory, political, and media groups on a wide range of issues). Leadership development is rapidly moving to include substantial components involving international markets, world economic trends, and focus on particular regions such as the Asia Pacific rim (Cacioppe, 1998)6. Kotler and Heskett (1992 Cited inRezaGharoieAhangar 2009)7 identify successful leaders as those who repeatedly communicate their vision, allow people to challenge these messages and stimulate middle managers to take up the cause and provide leadership themselves, characteristics similar to transformational leadership. Likewise leaders foster an environment for building intellectual, managerial and leadership capabilities. The whole concept of transformational leadership linked with HPW is a process by which leaders and followers raise one another to a higher moral and motivational level Burns (1978 Cited in Reza 2009)7.Through this process senior managers share organizations vision to intellectually inspire, stimulate and empower the subordinates. (Bass and Avolio, 1994 cited in Reza 2009)7. 4.0 FACTS, FINDINGS Political Environment In year 1964, Maldives was a very peaceful and stable country. After 2008, the market has become volatile characterized with higher degree of uncertainty and complexity due to our political environment and reform movement. On average new regulations and laws are passed and enacted every month. Along with the democratization process came various legal changes to the economy including the introduction and changes to several laws and regulations, notably, the business profitability tax, Good and service tax, Tourism Tax, Tourism Land Rent, Bank Profit Tax, Duty Free Royalty, Foreign Investment Royalty, Fuel Re-Export Royalty and re-export tax directly influencing the STO business. The fact was highlighted in the STO Annual Report (2011 p.3) as a risk. The newly elected president in 2008 resigned half way through his term and claimed he resigned duress. Many believe its a coup. Therefore, our political environment is at very high risk. This volatile and serious political environment is affecting each and every business of this country. The political situation influenced the business strategies of STO. Hence, most of the decisions were politically driven instead of the business motive. Economical: Global recession hit badly along with the rising fuel prices. It had adversely affected the company in two ways. Firstly, recession has led to fall in income, so consumers are spending less on Home improvement items (like Electronics, kitchen appliance) resulting in decrease sales and increasing storage cost and thus in the drop in company profitability. The unexpected plunge in exchange rate of Rufiyaa against US Dollar, coupled with the continuing problem of foreign exchange shortages caused major impact on the business performance. This was highlighted in the STO annual report (2011 p.7 MDs Message).The depreciation of the Maldivian Currency (Rufiyaa) following the introduction of the exchange rate band in April 2011. Shortage of foreign currency reserve (US Dollar) is affecting STOs business. Because STO is importing most of the items from Singapore, Japan, Dubai and chain. Due to the change in government in 2008, changes to the trade policy and the implementation of new tax laws and regulation brought many challenges to STO in terms of foreign currency transactions. Social: Image of the company: Over the past few decades STO has been one of most leading and reputed company in Maldives (price and Quality).Due to recent changes in political and economic environment, STO is facing many challenges to maintain its reputation. STO is participated and contributed to a number of social activities that are designed to positively contribute to our socio-economic development and towards protecting our natural environment. These activities are in line with the company policy of being an exemplary leader in corporate social responsibility.(annual report 2011p.07) Due to the extensive government intervention on STOs business decisions, STOs reputation and image are affected According to daily newspaper (Haveeru daily) STO is engaging in corruption and fraudulent trading in Singapore. This created bad publicity and tainted the image of the company. Technology: STO understands the importance of developing its technology infrastructure and considers continuous changes in business environment and advancement in technology. In line with this, STO management team decided and implemented the Enterprise Resource Planning (ERP) to improve productivity, reducing operational cost and improving internal control and monitoring. This system provides day-to-day information to make decisions which will facilitate to transform the future of STO and employee engagement. STO has implemented the human resources module of the ERP system, which will facilitate more efficient management of payroll and other staff related matters(Annual Report 2011 p.07). EFFECTIVELY An organization cannot run without proper vision and guidance of a leader. In todays changing world the role of leadership is even more essential, to show direction towards change, convince employees and finally to set a strong foundation to successfully carrying out change. Faced with Political, Economical and Foreign competition, STO underwent recent changes where by its major strategies were rethought strengthening the whole strategic process through integration, bundling, Diversifying and focusing new industries like, Tourism and Real estate (Annual Report 2011, p.25) .STOs major shareholder the government as well as shareholders have to evolve and transform with the changes to the business environment to achieve a successful future for STO. Hence, the following part gives insight into the topic precisely. Transformational leadership style Developing vision After these major changes in business environment, STO is moving forward to achieve its vision. STO had a vision to become the most successful and the most efficient parent company (of a diversified group of subsidiaries) in the Maldives by the year 2014. Investing on tourism, real estate and aviation (Annual Report 2011, p.25) would allow STO to achieve its corporative goals. Therefore, it has to be noted that STOs vision is in accordance with one of the cores of transformational leadership. Finding the way deal with this dramatic changes STOs Board and Management team has charismatic personality which drives people to believe in leadership and that can influence people about change like how it is embedded into STOs slogan evolving with. Thus, a charismatic leader like the newly appointed Chairman and directors (appointed 2012) has used their personality leadership style to enhance the business by setting clear values and supportive culture for the employees as well as for the company. Due to major changes in political environment and the economy in Maldives, leaders must confront and take bold steps rather than being in the background even after changes in order to set an example for others and to ensure long term success of change plan as the external environment is very uncertain. HUMAN RESOURCE AS STRATEGIC ASSET STO promotes itself as employees are the most important asset in the organization with HR best practices. To promote HR strategy, implement the human resources module of the ERP system, which will facilitate more efficient management of payroll and other staff related matters. Among these STO has stated its HR strategy as follows: Selective hiring , retention and extensive development of employees STO promotes itself as an employees brand and this perception by the public has given STO distinctive benefits in terms of better attraction of necessary and new skills, employee retention and engagement making it easy for STO selective hiring and retention. STO strives to attract and retain a productive and an enthusiastic workforce. The Company ensures its remuneration packages are competitive. In order to motivate staff to attain higher levels of productivity, employees are given an incentive bonus of 3% of the net profit for the year if the company exceeds its annual profit targets(Annual Report 2011, p.27) Recognizing Employees commitment STO is able to create commitment among their employees. STO realizes that commitment is ultimately personal. To recognize employees hard work, shields of appreciation are given to those who serve more than 15 years and best employees (Annual Report 2011, p.27). Training and development of Employees Oakland, CA January 16, 2012 Bersin Associates, the premier research and consulting firm empowering Human Resource (HR) organizations to drive bottom-line impact, today announced new research that shows spending on employee development rose 9.5 percent to an average of $800 per learner in 2011, as organizations moved to combat the current skills gap in the labor market. During the year, STO conducted many short-term training programs, and provided career deployment opportunities to its employees in many different professional are as (Annual Report 2011, p.27). Employees engagement Most of the organizations are facing new challenges due to development of social media such as twitter and face book. Organizations need to have employees engagement strategy to overcome the challenges. Employee engagement plays a vital role in motivating the performance levels of the workforce. A motivated employee will seek out ways to accomplish a task. Employee engagement illustrates the commitment and energy that employees bring to work and is a key indicator of their involvement and dedication to the organization. Employees who are engaged are more productive, content and more likely to be loyal to an organization. When organizations put sound HR practices in place, they are more likely to discover that employees feel satisfied, safe and will work to their full potential .Therefore STO recognizing, values, support, feeling in different situation like, providing financial support through staff loan, discounts and awarding long service staff every year. Striving to attract and retain a productive and an enthusiastic workforce, STO recreation club (STORC) conducts many sport events to help foster camaraderie and team spirit among staffs.(Annual Report 2011, p.28). Performance management According to the University of California, Berkeley is committed to a performance management system that fosters and rewards excellent performance. Effective performance management aligns the efforts of supervisors and employees with departmental and campus goals, promotes consistency in performance assessment, motivates all employees to perform at their best, and is conducted with fairness and transparency. (Cited in http://hrweb.berkeley.edu/performance-management). STO has also been taking measures to evaluate and manage the performance of both individual employees and departments through performance auditing on HR and also through a performance evaluation at the end of every financial year. HPW and Employee Engagement STO is adopting high performance working practices through SAP ERP system. The system helps to align a complex set of organizational elements including Strategy, vision, Mission, and goal, management practice, organizational structure, work practices and process human resource and other systems such as technology. Continuous high performance work systems have been cited by STO and the company is now transitioning to a high performance working system. This will require the development of a strong communication system and organizational restructuring. CONCLUSION Transforming whole business environment in Maldives (PEST) factors are affecting STO business. Domestic and international competition STO has managed to retain its market position. As new challenges emerge the change process will be an ongoing process to maintain market position. As now STO has completely lost its remaining exclusivities it will face new challenges from Multinational chain like (ACE hardware) over retaining customers. Excellent HR practices and efforts retain existing employees as well as new. To tackle the future challenges STO is developing its human resource, redesigning organizational structure, using latest technology and innovative software to efficiency and effectiveness of its operation. To achieve organization mission and vision, STO is adopting high performance working practices, increasing employee engagement, review STO pay package and career development opportunities. Furthermore investing eco-friendly products and engaging CSR to transform the future challenges. Therefore STO come to a decision to diversify its business into different area like, aviation, real estate business and tourism industry to improve its financial performance. This will attract more investors and shareholders as well as all stakeholders. So this strategy will bring more opportunities to the business as well as public in future. RECOMMENDATION Dynamic and complex business and Political environment STO is facing many challenges as well as opportunities in future. Therefore STO needs to be more proactive to these changes, which can be perceived by the knowledgeable among the corporate: Even though STO is government owned company (Major Shareholders), too much of government influence and political motive decision may not be business and profit oriented. It should be balanced in terms of politics and profit or business. As STO faces new challenges due to implementing EPR system, lack of trained employees. Therefore STO need to Investing in training programs helps employees develop personally and professionally to adopt this incremental changes in its processes and operation especially the way HR works, good and services are delivered to the end customer for this transformational change alone will not do. STO need to implement more monitoring and control mechanism to employee recruitment, Conflict resolution at workplace. STO need to developed HR Policies and procedures and communicate the values of its organization and provide everyone fair and transparent promotion and rewarding system. 9.0BIBLIOGRAPHY 1. Sung, Johhny and Ashton, David.High Performance Work Practices: linking strategy and skills to performance outcomes. s.l.  : Department of Trade and Industry, UK, 2005. 2. Schuler, A J. [Online] 2003. [Cited: 3 November 2011.] http://www.schulersolutions.com. 3. Recklies, Dagmar. [Online] 2001. [Cited: 4 November 2011.] http://www.themanager.org. 4. Canterucci, Jim. [Online] 2001. [Cited: 3 November 2011.] http://www.corpchange.com. 5. Nickols, Fred.Four Change Management Strategies. s.l.  : Distance Consulting LLC, 2010. Mike Millmore Philip Lewis Mark saunders, adrian Thornhill Trevor Morrow(2007) Strategic Human Resource Management contemporary issues Jon M. Werner and Randy L. Desimone (5th Edition) Human Resources Development Post :GauravAkrani Date : 12/27/2009 08:52:00 PM IST Comments (2) Lables : Management, Study Notes Craig W. Fontaine, Ph.D.(August 2007) NortheasternUniversity College of Business Administration A Critical Factor for Organizational Effectiveness and Employee Satisfaction Charlotte RaynerDerekadam-Smith, Managing Leading People (2nd Edition, chapter-9) Recruitment Selection Employee-engagementmaximizing-organizational-performance PERSONAL EXPERIENCE Throughout the work for this Assignment, I have learned how organizations operate and the challenges they face. I understood from this work that, regardless of how smooth and successful an organization is, changing and adopting leadership style are always needed. It may be in the target market, management, human resource or technology used by the organisation. For these reasons, if handled carefully with the right tools, change can be smooth and successful. I m confident, that I will be able to apply the techniques that I have learned from this work in all stages of my career.

Dance with the Music :: essays research papers

When we think of gifts, we picture little boxes covered with shiny wrapping paper and a cute little ribbon on top. For my fifth birthday, my present didn’t exactly fit these â€Å"requirements†.   Ã‚  Ã‚  Ã‚  Ã‚  Sitting down in front of the piano every night, I can remember the time when one little girl’s dream came true. Immediately after I woke up on the day of my fifth birthday, my parents blind-folded me and led me to the dining room. Taking off the handkerchief, I stood in front of the most beautiful piano I had ever seen. In front of me was a brown, upright Wurlitzer, my very own piano. I immediately pulled out the chair from under the piano and opened the lid. I took a deep breath and played Jingle Bells, the only song I could memorize at the time. Gliding my fingers over the smooth piano keys, I couldn’t believe that this was actually happening.   Ã‚  Ã‚  Ã‚  Ã‚  Turning five, I was only interested in music. While other children would sit in front of their televisions and bug their eyes out watching Barney and Sesame Street, I became engrossed in watching tapes of ballets, concerts, and musicals. It was evident that I was a child who would grow to love music and its art; however no one could ever imagine that this interest would evolve into a significance that would change my childhood forever.   Ã‚  Ã‚  Ã‚  Ã‚  At around the same time, I realized that my cousin Caroline was my role model. She was a tall girl that would blow people away as soon as she stepped into a room; you could sense her magnificence from a mile away. Caroline was attracted to just about everything that I was, and excelled at all the things that she attempted, which included the art of piano. Once I learned that she was such a brilliant musician, I started to beg to learn how to play the piano. Most of my family members thought that this was just some childhood stage that I would quickly get over and drop.   Ã‚  Ã‚  Ã‚  Ã‚  My mother brought me to my first keyboard teacher, Scott. He taught me about all the essentials including the notes, their values, and some simple songs. Although I learned nothing more then the basics, I was overjoyed, treating the uncomplicated steps as gold. Every week after lessons, I would rush to my parents, skipping with delight, eager to show them what I had learned.